Essay on Six Dangerous Myth About Pay

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Six Dangerous Myth About pay

Introduction: The assisnment is on the “Six Dangerous Myth About Pay” article by Jefferey Pfeffer. He has described six myths about pay that managers believe to be true. The myths and reality given are results of author’s research. But do we agree to the myths or reality written or we have any other opinions. My opinions about the myths are described below.

Myth No.01: Labour Rates and Labour Costs are the same thing:

Labor rates and labor cost are considered to be the same but there is a differentiation. Labor rate is actually the wages worker get for working. We can say total salary divided by time worked is labor rate. Job categories lead to different labor rates because of classification of jobs
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Companies benefit from innovative works. Individual incentives pay allows an employee to think broadly for his company benefit by doing innovative works. For example in Partex Denim Ltd there is an incentive pay policy for the marketing executives that if they exceed their sells they will be rewarded with incentive. Marketing employees found this policy very interesting cause there is a chance to prove their determination of work and as well to prove their ability of work. The company earns profit for this policy because the sell more than they have targeted.

Myth# 6: People work for money

I agree to this myth. Early exchange was made in terms of things like suppose like one need rice and he offer wheat for the exchange. Nowadays exchange is made through money. There is always necessity of things in life which people fulfilled by earning money. So basically people work for money. Although there are some arguments that people work to learn, to have fun but the proportion is very little and even if it is true at the end people take money in exchange for their works. So there is no way to deny the myth.

In my conclusion I would like to say that some the myths by Jeferey Pfeffer have privileges but compensation varies widely across nations, geographical areas, political views of labor compensation and so forth. If any managers directly follow the myths it won’t be